Having auto insurance is something required in pretty much every country in the world. In some places, it is a requirement to have before you leave the lot after purchasing a vehicle from a dealership. This does not apply if you purchase it directly from the owner or if you’re at an auction. It is something to have to protect yourself in case of an accident, just like any other insurance. The purpose of insurance in general is to protect us in the event of an emergency or an accident occurs to make sure our possessions and person are protected financially.
A type of auto insurance dates back to the Chinese in 3000 BC. This is when boats were the only way of transporting exports and imports all over the world. A marine insurance was necessary in case of a loss and we can see why. In 1898, Mr. Truman J. Martin was the first person to ever purchase this type of insurance for a vehicle. In 1927, the state of Massachusetts adopted the law requiring residents to own financial responsibility for their vehicle. Later on, it became mandatory for citizens of all 50 states to have some form of auto insurance. During this time, an agent from an insurance company would come to your home, or you go to their office, to the inspect the vehicle and determine how much you would pay for your coverage. These days you can simply shop online, imputing all the information necessary and receive a quote within minutes.
The vehicle owner pays a monthly, 6 months or yearly premium to the company they chose to cover their vehicle. Depending on the type of premium you choose determines exactly what it will and will not protect. Credit scores are taken into consideration, as well as age, driving history of the vehicle owner and location. It’s quite interesting that your neighborhood can determine if your rates are higher or lower than someone with the same vehicle in another state. For example, auto insurance chicago il may be higher than that of Athens, GA. The reason is the risk of extreme cold weather in IL compared to sunny weather most of the year in GA. The various coverage provided protects bodily harm, vehicle damage of your vehicle and others involved in an accident, rental insurance and it can cover those who have no insurance are not enough insurance to pay for physical damages.
So if you’re in the market for a vehicle, do not hesitate to shop around for the best insurance company to protect your vehicle in case of an accident. Research properly according to the state you live in as well as the type of vehicle you have. The newer and sporty your vehicle, the higher the premium will be as well. All in all, make sure you have at least liability insurance to make sure you and your vehicle is safe because your car can be replaced but not you!